To amend the Small Business Act to provide
the interest rate for certain disaster related loans, and for other
purposes.

1.

Short title

This Act may be cited as the
Disaster Loan Fairness Act of
2012.

2.

Interest rate for
certain disaster related loans

Section 7(d) of the Small Business Act is
amended by adding at the end the following:

(8)(A)

Upon application, the
Administration shall grant an interest rate determined under this paragraph
with respect to any qualifying disaster loan.

(B)

For the purposes of this paragraph a
qualifying disaster loan is the Administration’s share of a loan—

(i)

for which the interest rate would be
set pursuant to paragraph (5) but for the operation of this paragraph;

(ii)

which is or was made with respect to
activity in an area when the President has declared a major disaster in that
area under section 401 of the Stafford Act; and

(iii)

which is or was made during the
period beginning January 1, 2011, and ending on the date that is 4 years after
the date of the enactment of the Disaster
Loan Fairness Act of 2012.

(C)

The Administrator shall determine the
interest rate for each calendar year to be the lesser of—

(i)

4 percent; and

(ii)

a
rate equivalent to ½ the rate prevailing in the private market for similar
loans for those unable to attain credit elsewhere and
3/4 of that prevailing rate for those
able to attain credit elsewhere.

(D)

The Administrator shall refund excess
interest payments to borrowers whose interest rate on already made loans is
lowered by reason of the operation of the paragraph.

(E)

Not later than one year after the date of
the enactment of the Disaster Loan Fairness
Act of 2012, the Administrator shall report to Congress as part
of the annual report under Section 10(a) on whether the interest rate provided
by this paragraph has resulted in any or all of the following:

(i)

A greater number of applications for
disaster related loans.

(ii)

A
greater number of approvals of disaster related loans.

(iii)

A decreased default rate on disaster
related
loans.

.

3.

Termination of use of
public funds for political party nominating conventions

Section 9008 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
subsection:

(i)

Termination of
use of funds for conventions

Notwithstanding any other provision of this
section, in the case of any presidential election held after 2012—

(1)

the Secretary
shall not make any payments under subsection (b)(3) to any national committee
of a major party or minor party;

(2)

on November 1 of the year prior to the year
in which the election is held, the Secretary shall determine—

(A)

in the case of the
first such election, the amount which is equal to the aggregate amount of the
payments which were made under subsection (b)(3) to the national committees of
a major party or minor party for the presidential election held in 2012,
adjusted in the manner described in subsection (b)(5), or

(B)

in the case of any
subsequent election, the amount which is equal to the amount determined under
subparagraph (A), adjusted in the manner described in subsection (b)(5);
and

(3)

at the time the Secretary makes the
determination under paragraph (2), an amount equal to the amount determined
under paragraph (2) shall be permanently rescinded from the fund and returned
to the general fund.